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Here's some interesting statistics gleaned from an article at Inman News...

In the latest National Association of Realtors Profile of Home Buyers and Sellers, based on a survey of 7,500 home buyers and sellers, 80 percent of home buyers used the Internet in searching for a home, up from 77 percent in the 2005 survey and 74 percent in 2004.

Meanwhile, a 2006 survey by media research firm Borrell Associates Inc. found that 61 percent of real estate agents do not advertise on the Internet and 87 percent of agents do not buy keyword advertising from the Google or Yahoo search-engine companies.

One local agent I spoke with indicated the reason was that, "For many agents, real estate is a second career. They lack the understanding of how to use technology as a marketing tool. Not only that, the cost is often outside the boundary of what agents can afford."

Online marketing can be a complicated affair, considering all the options available. It runs the gamut from lead-generation websites to pay-per-click ads to blogs to search engine optimization to banner ads. No wonder most agents don't advertise online. How would they even know where to begin?

The scenario is changing, if not at the agent level, then certainly among franchises and brokerages. Online spending in the real estate industry is picking up and is expected to reach 32.1 percent by 2010 says the Inman piece.

Speaking of brokers, Joe Ballarino, president and founder of Amerivest Realty, a real estate company based in Naples, Fla., said, "Brokers should play a role in 'moving the Web marketing strategy continually forward' while freeing up agents to work with clients. A good, clear written plan of how the company's Web marketing hands off clients to (its) agents is a must."

Truer words were never spoken, but I wonder how widespread that strategy is. The aforementioned agent I spoke with indicated that, "If the agent is relying on the broker to do all the marketing for them, they're not doing their job. The top 10% of agents in the industry maintain a strong Internet presence themselves."

It appears to me there is a balancing act between what the agent can expect of the broker to do on their behalf and what they should expect of themselves. One tactic that might work is that brokers take some time to educate agents as to the available options, including blogs.

You know what I'm about to ask, right? I'll ask anyway: "What's wrong with this picture?"

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I would like to have more buyers contact me using the internet.
I believe the agent meant by "second career," a change from their previous career, not merely a second income. However, there are many real estate agents who fall under that category as well, I'm sure. My belief is that the Internet is the future and those who don't avail themselves of its many benefits will become less relevant. The old tried-and-true may still work in some parts of the country, but give it a few years even in those locales things will change. As to smaller agencies with less money devoted to marketing, I think the Internet can be somewhat of a savior. It costs very little to use email marketing, blogs, and social media; pennies on the dollar compared to direct mail and media purchases via television, radio and newspapers. Even Pay-Per-Click advertising via Google's Adwords program can be cost-contained, if carefully managed. Not only that, using technologies like blogs and social networks (MySpace, for example) the agent will be able to create their own unique presence on the web, differentiate themselves from their competition, generate positive SEO, and build their own personal brand...for very little costs comparatively. Bottom line: If you're not on the net, you need to be. Your prospective customers are.
It seems to me that every real estate professional would be eager to take full advantage of the different opportunities that the Internet and other technologies have given them. Fully utilizing the Internet would give professionals a greater reach in advertising, and would also give them a way to offer easy to use services to a lot more people. You brought up in your post through a quote from another agent that this could be due to the number of real estate professionals using the industry as a second means of income. Do you think the Internet will separate out those people? I would think that in a few years, the industry will revolve heavily around the Internet, and those not involved in it will be somewhat obsolete. Also, could these new developments end up hurting smaller companies, who have less resources and capital to enable them to fully take advantage of the new options available to them? I am still in college, but I am planning on going into the real estate industry when I graduate. Personally, I can’t think of a better way to run a successful business and reach new customers than to take full advantage of the Internet. Maybe there is too big of a generation gap, and those real estate professionals that are part of the older generations will never fully utilize the many opportunities available to them through new technology. What do you think about this?

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